If you haven’t heard already, one of the largest American retailers has failed in Canada. Many people are shocked, but I for one, am not. Before I get into the reasons why I believe Target fizzled out, I want to mention one important thing. The way has been cleared for liquidation to begin!
Target Liquidation Sale
I am super excited for this. When Zellers went out of business I got my bike for $88.00. Eighty-eight dollars!! I was 8 months pregnant when I bought it, so I didn’t get much use out of it in the beginning. However, it was one of the best deals I ever got besides my house.
On my list of things to buy (for no less than 50% off) include the following mundane items:
- 3 sets of king sized bed sheets
- 3 sets of headphones
- Children’s socks
- Camera Accessories
- Nail Polish
- Work Out Gear
- an additional yoga mat
- spandex clothing
- Under garments
Why Target Failed From Where I Am Standing
Too Big, Too Fast
I’m no expert, but I took “Business 101: Start Small”. I really wonder why Target thought it was a good idea to open 100+ at one time. Not only that, but a lot of the stores (at least in Calgary) were in less than desirable locations. I have to wonder if they did their market research properly.
Canadians Are Not Americans
While those overseas see no difference between Canadians and Americans. Canadians say different. We do not shop the same way as Americans. I don’t buy shoes at the same store as cleaning products. Most Canadians are the same way. We don’t expect a place to be a one stop shop. If we do want a one stop everything has to be there: from apples to zoom lenses.
Canadians Aren’t Ignorant
We know what goes on across the border. We know the brands that are carried in Boise, Idaho Targets. We have been there. We want everything the Americans have and more. Don’t try and change the product mix and skimp on the inventory management. We KNOW!
The Prices Weren’t Good Enough
This was the biggest problem. Now, I understand that the market in the USA is much bigger and is saturated with similar competition. These factors can help drive down prices for the consumer. Target also has over 1000 stores in the US and can realize economies of scale through its purchasing power. But we (customers) don’t care about that stuff. We just want those pants at $64.98. Not $64.99. Canadians wanted the same great prices they saw in the US. Nothing more, nothing less. Well, maybe less.
Did you ever shop at target?